Bipartisan Housing Reform Bill Removed from Key Defense Legislation, Delaying Affordability Solutions

House Republicans have removed the bipartisan ROAD to Housing Act of 2025 from the must-pass National Defense Authorization Act (NDAA), delaying significant federal housing reform efforts aimed at increasing homeownership affordability. The legislation, passed unanimously by the Senate Banking Committee and included in the Senate's version of the NDAA, sought to address the housing inventory shortage worsened by pandemic-era buying fueled by low borrowing costs. This shortage has driven home prices about 30% above 2019 levels, combined with high mortgage rates, taxes, HOA fees, and insurance premiums, making homeownership unaffordable for many Americans. The ROAD to Housing Act represented the most substantial housing legislation in over a decade, focusing on increasing housing supply, encouraging construction, improving oversight of federal housing programs, and reducing regulatory barriers. Industry organizations like the National Association of Realtors and the National Association of Home Builders supported the bill, highlighting its potential to ease the affordability crisis through zoning reforms and support for rural and multifamily housing development. However, the House has opted to exclude the housing bill from the NDAA, with House Financial Services Committee Chair French Hill indicating a preference to pursue standalone legislation on housing affordability. Senate supporters, including Senator Tim Scott and Senator Elizabeth Warren, have emphasized the urgent need for reforms to cut red tape and expand housing supply to stabilize homeownership and reduce costs. The removal of the bill stalls but does not necessarily end the legislative effort. Advocacy groups and stakeholders anticipate reintroducing or attaching the ROAD to Housing Act to another legislative vehicle. The House Financial Services Committee plans to commence work on new standalone housing legislation in the near term, amid ongoing calls for comprehensive federal measures to address the persistent housing affordability crisis. Delays in federal housing reform may prolong challenges related to housing supply shortages, affordability, and regulatory barriers, affecting market dynamics for homeowners, lenders, insurers, and policymakers who are engaged in housing finance and development sectors. The debate reflects ongoing tensions in aligning bipartisan policy solutions to curb growing housing costs and increase accessibility for American families.